Currency Exchange Rate Predictions For Pound Sterling, Euro, Australian Dollar & US Dollar

Modified: Friday, 9 August 2013 09:28 BST - Written by Tim Boyer

STORY LINK Currency Exchange Rate Predictions For Pound Sterling, Euro, Australian Dollar & US Dollar

The POUND STERLING came in for some sustained support against the other majors in the aftermath of Wednesday’s Bank of England ‘forward guidance’ statement. However, it wasn’t the promise of low UK interest rates for years to come which favoured the Pound, but instead the BoE’s upward revision to its 2013 GDP growth forecast. For this reason, the outlook for Sterling is NEUTRAL TO NEGATIVE.

The EURO has struggled to assert itself against Sterling since the Bank of England’s inflation report, sending GBP EUR to as high as 1.1634 yesterday. The European Central Bank’s monthly report, published yesterday morning, hinted that eurozone interest rates could drop further from their current record low of 0.50%, should the region’s inflation levels remain low. For this reason, the outlook for the single currency is NEGATIVE.

The AUSTRALIAN DOLLAR enjoyed a positive session yesterday thanks to some better than anticipated domestic labour market numbers, released during Thursday night’s Asian session. However, with the Reserve Bank of Australia maintaining its rate-cutting bias earlier in the week, support for the Aussie may prove short-lived. The Australian tender is expected to trade on a NEGATIVE footing moving forward. The GBP AUD exchange rate stands at 1.7044.

The US DOLLAR has slumped this week as investors express their doubts that the US Federal Reserve is ready to scale down its Quantitative Easing programme just yet. Yesterday afternoon’s American Initial Jobless Claims figures, which just about managed to better analysts’ expectations, provides investors holding Greenback-denominated assets with some hope that the days of ‘easy money’ maybe drawing to a close in the States. The Buck is expected to trade with a NEUTRAL TO POITIVE bias in the near-term and GBP USD sits at 1.5547.

For more exchange rate predictions, forecasts or for information on international money transfer matters please see the main Currency News UK website.

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